Reliance Power refutes AAP allegations on coal allotment for Sasan project

AAP has raised questions over allotment of coal to the 4,000 Mw Sasan Power project of Reliance Power and questioned role of Shivraj Singh Chouhan in a coal deal

Reliance Power Ltd (RPL) has refuted the allegations made by Aam Admi Party (Aap) and said all allegations leveled by the party are baseless. The party has raised questions over allotment of coal to the 4,000 Mw Sasan Power project of Reliance Power and questioned role of the state chief minister Shivraj Singh Chouhan in a coal deal.

AAP has raised a slew of questions and alleged that the role of MP CM in 'pressurising' the Central government to allot Mahan Coal Block to Essar and Hindalco despite disagreement of Ministry of Forest and Environment.

Till March 2009, Union Ministry of Coal took the stand that the two coal blocks (Moher & Moher Amlohri) initially allocated were sufficient for Sasan project and that the third block (Chhatrasal) was not required. "Why then Chhatrasal was taken away from NTPC and allotted to Sasan?" an Aap spokesperson had asked.

"In November 2007 MP CM wrote to the PM that RPL be allowed to divert the surplus coal from Sasan. What mechanism the CM had to get this knowledge? On the one hand Chouhan is suggesting of surplus coal and on the other hand RPL is claiming till 2008 surplus coal cannot be extracted from Sasan," the spokesperson alleged here.

Responding to allegations made by AAP, a company spokesperson said in a statement, "The allegations levelled by Aam Admi Party against the company are completely baseless and politically motivated. The allocation of all the three coal mines to the Sasan project was done to Sasan Power Ltd (SPL) when SPL was 100 per cent owned by Power Finance Corporation (PFC), a Government company in the year 2006 -- much before the bids were invited for the Project. Ownership of SPL was transferred to Reliance Power Ltd (RPL) in 2007 upon RPL emerging as successful bidder in the Global Tender."

The company further said, "The use of surplus coal from the Sasan project has been approved on two separate occasions by two Empowered Group of Ministers (EGOM). Delhi High Court has also dismissed a petition in the year 2009 on this matter filed against the Government by Tata Power."

Narottam Mishra, a cabinet colleague of Chouhan has also said the allegations were baseless. "Coal allocation issue was taken by a group of ministers. The chief minister made no recommendation for coal allocation in favour of any company," he said.